Compliance & Legal Considerations Flashcards

Under 2 CFR Part 200, what is the threshold for a single audit (Uniform Guidance audit)?

Answer: $750,000 in federal expenditures

The Single Audit threshold under 2 CFR Part 200 is $750,000 in federal expenditures in a fiscal year.

Which document outlines the specific terms, conditions, and compliance requirements binding a grant recipient?

Answer: The Notice of Award (NOA)

The Notice of Award is the legally binding document that specifies the terms and conditions a recipient must comply with.

A grantee discovers a subrecipient has been charging unallowable costs to a federal award. What is the grantee's FIRST obligation?

Answer: Require the subrecipient to repay the disallowed costs

The pass-through entity is responsible for ensuring disallowed costs are returned; requiring repayment is the direct first step before escalating.

Which principle ensures that grant funds are used only for costs that are necessary and reasonable for the project?

Answer: Allowability

Allowability requires that costs comply with federal cost principles, are necessary, and are authorized by the award terms.

A recipient organization has a written travel policy that applies uniformly to all projects. Under 2 CFR Part 200, which cost principle does this practice satisfy?

Answer: Consistency

Consistency requires that costs are treated uniformly across federally funded and non-federally funded activities.

What is the primary purpose of the Federal Funding Accountability and Transparency Act (FFATA)?

Answer: To require public disclosure of federal awards and subawards

FFATA requires federal agencies and recipients to report award and subaward data publicly on USASpending.gov.

Which of the following is an example of a material weakness in internal controls over a federal grant?

Answer: Failure to segregate duties between authorization and payment functions

Lack of segregation of duties is a classic material weakness because it allows errors or fraud to go undetected.